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Rank Group hits jackpot with digital offer

The FTSE 250-company keeps focusing on digital, following the acquisition of Stride Gaming PLC completed earlier this month

Rank Group - Rank Group hits jackpot with digital offer
Gross gaming revenue, defined by the firm as “revenue before adjustments for customer incentives”, was up 8% driven by a 15% growth in digital

Gambling company Rank Group PLC (LON:RNK), owner of Grosvenor Casinos and Mecca Bingo, has reported digital-led growth in a trading update for the quarter ended September 30.

Gross gaming revenue (GGR),  defined by the firm as “revenue before adjustments for customer incentives”, was up 8% year-on-year driven by a 15% growth in digital, offset by flat numbers in Mecca venues.

Net gaming revenue at the group's venues was up 9% year-on-year on a like-for-like basis.

READ: Rank Group returns to growth thanks to digital acceleration

Grosvenor, which traditionally is stronger in what is the first quarter of the company's fiscal year, saw GGR rise 10% from a year earlier while revenue in international venues was up 4%.

The FTSE 250-company is increasingly focusing on digital, following the acquisition of Stride Gaming PLC, which had full-year proforma adjusted earnings of £11.3mln. The acquisition was completed earlier this month.

“We are pleased with the growth achieved across our businesses in this key part of our financial year, as well as with the ongoing progress we are making with our transformation programme,” said Rank’s chief executive John O’Reilly.

“The acquisition of Stride marks a pivotal moment in the development of our digital offering and having completed on 4 October 2019, we are now starting the execution of all our plans for integration and delivery of synergy benefits.”

Shares were up 3.5% to 205.75p in the early morning.

Quick facts: Rank Group

Price: 280.5 GBX

LSE:RNK
Market: LSE
Market Cap: £1.1 billion
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